Malaysia Inflation Eases to 3-Month Low

The annual inflation rate in Malaysia slowed to 1.4% in February 2026 from an eleven-month high of 1.6% in the previous month and below market forecast of 1.6%. The latest figure marked the lowest reading since November last year, driven by slower price increases for food and beverages (1.3% vs 1.5% in January), health (1.2% vs 1.4%), and information and communication (0.5% vs 0.7%). Inflation also softened for education (2.8% vs 3.2%) and restaurants and accommodation services (2.5% vs 3%). On the other hand, costs increased further for alcoholic beverages and tobacco (2.6% vs 2.5%), personal care, social protection & miscellaneous goods & services (6.9% vs 6.6%), while it remained steady for furnishings, household equipment and maintenance (at 0.2%). Core inflation, which excludes volatile fresh food and administered prices, eased to 2% from 2.3% in January, marking the softest in six months. On a monthly basis, consumer prices rose by 0.2%, following a 0.1% gain in January.

Malaysia’s annual inflation held at 1.6% in January 2026, unchanged from the previous month and in line with market expectations. The latest reading remained at its highest level since January 2025, as upward price pressures came from most components, including food & drinks (1.5% vs 1.5% in December), alcoholic beverages & tobacco (2.5% vs 2.5%), housing (1.2% vs 0.9%), furnishing (0.2% vs 0.3%), health (1.4% vs 1.5%), communication (0.7% vs 0.9%), recreation (0.9% vs 0.8%), education (3.2% vs 2.8%), restaurants & accommodation services (3.0% vs 3.1%), insurance & financial services (5.5% vs 5.6%), and miscellaneous items (6.6% vs 5.7%). Meanwhile, clothing prices were flat after falling 0.1% previously. In contrast, transport cost fell 0.7%, reversing a 0.1% gain in December. Core inflation, which excludes volatile fresh food and administered prices, stayed steady at 2.3% yoy, its highest since October 2023. Monthly, consumer prices edged up 0.1%, easing from a 0.3% rise in December.

Malaysia’s annual inflation came in at 1.6% in December 2025, compared with November’s figure and market forecasts of 1.4%. It was the highest reading since January, with upward price pressures evident across all components: food & drinks (1.5% vs 1.5% in November), alcoholic beverages & tobacco (2.5% vs 2.4%), clothing (0.1% vs -0.1%), housing (0.9% vs 0.7%), furnishing (0.3% vs 0.2%), health (1.5% vs 1.5%), transport (0.1% vs 0.2%), communication (0.9% vs -1.3%), recreation (0.8% vs 1.2%), education (2.8% vs 2.6%), restaurants & accommodation services (3.1% vs 3.4%), insurance & financial services (5.6% vs 5.6%), and miscellaneous items (5.7% vs 5.6%). Core inflation, which excludes volatile fresh food and administered prices, stood at 2.3% yoy, the highest since October 2023. Monthly, consumer prices increased 0.3%, picking up from a flat reading in November and pointing to the fastest pace in ten months.